Here’s Why GDS Investments is Long General Electric (GE)

GDS Investments, an investment management firm, published its year-end investor letter – a copy of which can be seen here. In the letter, the fund talked about the negative impact brought about by the pandemic and how it affected the market as a whole. GDS mentioned that their focus will be on companies that can positively absorb the effects of the rising inflation and reduced monetary policy. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.op 5 holdings to have a peek at their top bets for 2021.

GDS Investments, in their Q4 2020 investor letter, mentioned General Electric Company (NYSE: GE) and emphasized their views on the company. General Electric Company is a Boston Massachusetts-based multinational digital industrial company. It currently has a $116.1 billion market capitalization. Since the beginning of the year, GE delivered a 22.69% return, extending its 12-month gains to 83.26%. As of March 10, 2021, the stock closed at $13.25 per share.

Here is what GDS Investments has to say about General Electric Company in their Q4 2020 investor letter:

“After struggling for much of the year through the pandemic and the Boeing 737 Max debacle, General Electric Company (NYSE: GE) is trending higher after reporting better-than-expected third-quarter results. The company’s Power and Renewable Energy businesses showed modest growth and, overall, there are encouraging signs of stabilization as we forecast the next two to three years. We will monitor this long-term position and look forward to this American icon continuing its return to greatness.”

Our calculations show that General Electric Company (NYSE: GE) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, General Electric was in 69 hedge fund portfolios, compared to 45 funds in the third quarter. GE delivered a 17.05% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.